National and Labour Politicians Spar Over Economic Vision in Election Summit

National's finance spokesperson Nicola Willis and Labour's Barbara Edmonds recently went head-to-head at an election summit, laying out their plans for New Zealand's economy. The two politicians clashed over inflation and who truly understands the cost-of-living crisis.

Willis took aim at Labour's core Crown expenditure and revenue pledge of 33% for both, saying that returning employment to the Reserve Bank's monetary policy mandate alongside inflation targeting led to 'confused decision making' during the Covid-19 period. She argued that this dual mandate caused an asset price bubble, high inflation, and interest rates.

Willis outlined National's proposition as continuing their fiscal and monetary policy foundations, encouraging investment, increasing productivity, reducing red tape, educating children for a modern economy, and delivering infrastructure for growth. 'This is no time for voodoo economics,' she said.

Labour's Barbara Edmonds countered that the cost of living isn't just about bringing inflation down; it's about purchasing power. She emphasized that if wages and income stay up to date with inflation, people have the ability to buy what they want, but when inflation bites and wages drop, discretionary spending decreases.

Edmonds pointed out underlying issues such as lagging productivity due to New Zealand's geographical location and lack of competition in sectors like supermarkets. She mentioned Labour's plans to support small businesses by increasing the GST threshold and reviewing the immediate asset threshold.